News

FireEye announces pricing of IPO

Warwick Ashford

Security firm FireEye has announced the pricing of its initial public offering of 15,175,000 shares of its common stock at a price to the public of $20.00 a share.

The IPO price values FireEye at about $2.3bn, and the company is reported to have raised about $304m from the offering.

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All of the shares are being offered by FireEye, the company said in a statement. 

In addition, FireEye has granted the underwriters a 30-day option to purchase up to an additional 2,275,000 shares of common stock to cover over-allotments, if any, the statement said.

The shares are expected to begin trading on technology-dominated NASDAQ Global Select Market.

Morgan Stanley, Goldman Sachs, J.P. Morgan Securities and Barclays Capital are acting as lead joint bookrunners for the offering, and BofA Merrill Lynch and UBS Securities are acting as other book-running managers for the offering.

Nomura Securities International is acting as a co-manager for the offering.

FireEye said a registration statement relating to these securities has been filed with, and declared effective by, the US Securities and Exchange Commission.

The cyber security company is betting that it will prove attractive to new investors, according to the New York Times.

Among FireEye’s current backers are Sequoia Capital and Norwest Venture Partners.

The company reported a $35.8m loss last year, more than double from the prior year. But its revenue jumped 147%, to $83.3m.

FireEye plans to use proceeds from the sale to hire more employees and expand its business.

The company is one of the latest technology companies to seek a public listing, part of a revival in a largely dormant sector for IPOs, according to the New York Times.

Tech companies currently account for just 17% of all new offerings, the lowest percentage of all initial stock sales since 2008, the paper said.

 

 


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